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psLogin MSign In | McGraw-H... Orange: Connect .. Big Data-Online C... D University of Califor.. .S Ca connect. ACCOUNTING ter 21 Homework Question 8 (of 8) value: 125 points World Company expects to operate at60% of its productive capacity of 11,000 units per mott Attis level, the company expects to use 4,950 standard hours of direct labor. Overhead is allocated to standard rate based on dret labor hours. At the 60% capacey level, the using a al budgeted cost includes $9,900 fxed overhead cost and $39,600 variable overhead cost. in the current units. (Do not round intermediate calculations. Round "OH costs per DL hour to 2 decimal places) (1) Compute the overhead application rate for total overheed. OH rate Variable overhead costs Fixed overhead costs Total overhead costs 8.00 per DL hr 2.00 per DL hr. 10.00 per DL hr (2) Compute the total overheed variance. OH Standard DL Overhead costs Actual results Variance FavJUnf rate Variable overhead costs Fixed overhead costs Total overhead costs 8.00 2.00 10.00 4,950 $ 4,950 14 3,510 17.550 34,250 (16,700) Unfavorable Hints References Book &Resources; Hint #1 29Explanation / Answer
$19680
(2460 Hours X $ 8)
$ 4920
(2460 Hours X $ 2)
Actual Production 3900 units Predeterined OH Rate Standard DL Hours Overhead Cost Apllied Actual Result Variance Fav./Unfav. Variable Overhead Cost $ 8 4950$19680
(2460 Hours X $ 8)
Fixed Overhead Cost $ 2 4950$ 4920
(2460 Hours X $ 2)
Total Overhead Cost $10 $24600 $34250 ($9650) UnfavorableRelated Questions
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